IIBM Institute of business Management Semester – 1 Principle and Practice of management Answer Sheet Section ‘A’ – Part One: 1. A plan is a trap laid to capture the FUTURE. 2. STAFFING is the function of employing suitable person for the enterprise. 3. DEPARTMENTATION means “ group of activities & employees into department”. 4. ACCEPTANCE THEORY states that authority is the power that is accepted by others. 5. DECENTRALIZATION means dispersal of decision-making power to the lower level of the organization. 6.
MASTER CHART is the basic document of the organizational structure. 7. Communication which flow from the superior to subordinates with the help of scalar chain is known as DOWNWARD COMMUNICATION . 8. Needs for belongingness, friendship, love, affection, attention & social acceptance are SOCIAL NEEDS. 9. A management function which ensure “jobs to be filled with the right people, with the right knowledge, skills & attitude is STAFFING DEFINED. 10. COUNSELING is a process that enables a person to sort out issues and reach to a decision affecting their life. Part Two: 1). The difference between management & administration are that:-
Administration is the function in industry concerned with the determination of the corporate policy, the co-ordination of finance, production and distribution whereas Management is the function concerned with the execution of policy within the limits setup by administration. Thus, administration is formulation of policies and is a determinative function while management is execution of policies and is an executive function. Administration involves the overall setting of major objectives determination of policies, identifying of general purposes laying down broad programmes etc. hile management is the active direction of human efforts with a view to getting this done. 2). The common drawbacks of the classical and the neo classical theories of management are listed below:- i) Both the theories had certain unrealistic assumptions and hence were not applicable to the organisation at a later date. ii) Both the theories had limited application, the formats and structures of organisations are not universal in both the theories. There is no particular structure which may serve the purpose of all the organisations.
They also overlook some of the environmental constraints which managers cannot ignore and this lapse makes the practicability of the theory limited. iii) Lack of Unified Approach: The theories lack the unified approach of an organisation. 3). Line Organisation is the oldest form of an organisation. This is known by different means, i. e. , military, vertical, scalar and departmental. All other types of organisation structure have mostly been modifications of the line organisation. The concept of the line organisation holds that in any organisation derived from a scalar process, there must be a single head who commands it.
Although an executive can delegate authority, he has ultimate responsibility for results. According to some writer “Line structure consists of the direct vertical relationship which connect the positions and tasks of each level with those above and below it, and some others say “organisationally, the line is the chain of command that extends from the board of directors through the various delegations and re-delegations of authority and responsibility to the point where the primary activities of the enterprise are performed. 4).
Acceptance theory is a theory which states that authority is the power that is accepted by others. Formal authority is reduced to nominal authority if it is not accepted by the subordinates. The subordinates accept the authority if the advantages to be derived by its acceptance exceed the disadvantages resulting from its refusal. The subordinates give obedience to the mangers because they visualise the following advantages- i) Receipt of financial incentives. ii) Contribution in attaining the objectives of the enterprise. iii) Fulfilment of responsibilities. v) Appreciation from colleagues. v) Setting of an example for others. vi) Responsibility to leadership of superior. vii) Moral obligation because of regard for old age, experience, competence, etc. According to acceptance theory, authority flows from bottom to top. A manager has authority if he gets obedience from the subordinates. Subordinates obey the managers because of the fear of losing financial rewards. This theory emphasises sanctions that a manager can use and overlooks the influence of social institutions like trade unions. Section ‘B’- Case let – 1
Q1) Critically analyse Mr. Vincent’s reasoning. Ans: Mr. Vincent was a good and successful manager but he followed the traditional type of management skills, and that is why he was not unsuccessful. But when he was taught of many other ways of managements he started to think that he should only know it for the test because he was confident thinking that whatever he knows is enough as he was successful, but he was wrong because with other skills applications he could have not only been successful but could also grow his organisation and take it to the top of his competitors.
He could make an increase in the profit of his organisation and save the wastes as much as possible. Being an manager he should have always been innovative in his ideas of management but he was going the other way, even though his professor was teaching him new thought he was busy thinking that he will stick to his old way of planning, organising and controlling approach to manage his store. Q2) If you were the professor and you knew what was going through Vincent’s mind, what would you say to Vincent?
Ans: If I was the professor and knew what was going through Vincent’s mind then I would have explained him the concept again but this time the other way giving him his own example and then make him feel the lacking part of his successful management career making him feel that his thought were also correct put old enough and needed to be updated according to the needs of the environment today.
I would have told him that with modernization he should become innovative too and that not only planning, organising and controlling are steps of successful management but it could also be thought of as quantitative models, system theory and analysis, and even something called contingency relationship, so that he could implement many other theories and methods in his process of managing his job, so that he should not only be successful but Also that his organisation should grow and give good competition to the other organisations around him and so that he could make good and proper use of his available resources.
Case Let – 2 Q1). Diagnose the problem and enumerate the reason for the failure of D’Cuhna? Ans: D’Cuhna was a good professional executive but being good and equal sometimes might go against one’s self only.
The problem with D’Cuhna was that he was going to quickly in his work and not giving others time to catch up, everyone knew that he was selected because of his experience, background and abilities but he should also understand that he was the part of an organisation which was new and not even fully trained for the work so how could they work at his speed and expectations, the problem with D’Cuhna was that he being an old executive should know that in an organisation there human beings and that they are emotional in nature so he should not treat everyone i. . male and female staffs in the same manner, he had no right to scold someone on account of others pending work, because it was his duty to see that if someone is on sick leave he should replace that position temporarily, but D’Cuhna did not do so and went on to scold the female staff. When he was cross answered by the female staff for the first time then only he should have understood her emotional nature and talked to the higher authority for suggestions. Q2). What could D’Cuhna have done to avoid the situation in which he found himself?
Ans: If at the very beginning only D’Cuhna had looked into the matter as why the female clerk was submitting nil returns and after knowing it if he would have filled the vacant officer’s place with a temporary staff then the matter would not have been raised higher, later when the lady clerk was cross answering him then instead of firing her and scolding her if D’Cuhna had gone and spoken to the higher authorities regarding the matter then planned and taken any step to solve the problem and then taken any strict action then also D’Cuhna could have found himself out of this trouble.
Even after all this had happened if D’Cuhna had apologised to the lady staff and then explained her politely then also some chances were there for him to get out of this trouble which he had created for himself, as ladies are very emotional in nature and like politeness. But after all what had been done and finally the only option for him to get out of all this was to quit as he did. Section ‘C’ – Q1) What is training? Explain the different method of training?
Ans : Training is the act of increasing the knowledge and skills of an employee for doing a particular job, traditionally training had focused on technical and mechanical skills. Training has to focus also on interpersonal and social skills, on listening, on control over body language, on communication and presentation skills, etc. The different method of training is as follows:- i) Case Method: This method can be said to be midway between “learn by doing” and “learn by listening. In this method the trainees get a descriptive record in the form of a case. The participants, have chance to see themselves as one or another person in the case ii) Incident Process: Unlike the case method the incident is also a brief statement of an event or a situation. Additional data is event or a situation. Additional data is made available in response to specific questions from the participants. iii) Lecture Method: This is a very popular method. The lecture is actively involved while the participants are largely passive. v) Business games: In business games, the participants may form into groups of three or four, each groups would be given data about plant capacities, material costs, availability of materials, cost of carrying inventories, etc. and based on the fact provided to the participants they have to make decisions simulating situations which arise in business organisation form time to time. v) Role Playing: In this method different participants are given details and fact of a character about its past and are told to act like it. Q2) Explain Decision–Making Process of an organization?
Ans: Decision-making: Management process involves decision making at all levels. Decision-making describes the process by which a course of action is selected as the way to deal with a specific problem. If there is only one alternative, the question of decision making does not arise. The quality of alternatives which a manger selects determines the organization’s performance, and the future of the organization. The decision making process of an organization are listed below:- * Setting objectives: Rational decision-making involves a concrete goal of objectives.
So the first step in decision-making is to know one’s objectives. * Perception of the problem: Perception involves defining and recognising the problem in a clear-cut manner. * Analysing the problem: After defining the problem, the next step in decision-making is analysing it. The problem should be thoroughly analysed to find out adequate background information and data relating to the situation. * Developing alternative solutions: After analysing a problem, with the help of relevant information, the decision-maker should formulate several alternative solutions for the problem. Screening the alternatives: After developing various alternatives, the next stepshould be to judge and evaluate them through some decision criteria. * Selecting the best solution: After evaluation of various alternatives, the nextstep is the selection of the best solution. * Implementing the decision: After taking the final decision the next problem isto put decision into effect. * Feedback and Control: The last step in the process of a right decision is to follow up the decision.